Intelsat emerges from Chapter 11
February 24, 2022
Intelsat has formally confirmed its emergence from Chapter 11 reconstruction.
The satellite operator said it had emerged as a private company with a substantially strengthened capital structure to support its growth as the leader in satellite communications. This final milestone follows receipt of regulatory approvals, completion of certain corporate actions, and satisfaction of other customary conditions.
Intelsat’s now-effective Plan of Reorganisation, supported by all creditor groups and confirmed by the Bankruptcy Court on December 16th 2021, has reduced the Company’s debt by more than half, from approximately $16 billion to $7 billion.
In connection with emergence, Intelsat obtained $6.7 billion in new financing consisting of a revolving credit facility, term loan, and secured notes. Supported by new equity owners, the Company is now best positioned for long-term success as it continues to innovate and bring new services to market.
Intelsat also has a new Board of Directors, composed of the Company’s Chief Executive Officer and six new directors, including Lisa Hammitt, Intelsat’s Chairperson.
“For more than 50 years, Intelsat has led innovation in our sector and delivered high-performing services for customers,” said Intelsat’s CEO, Stephen Spengler. “Now that our financial restructuring has been completed successfully, we are driving Intelsat’s future development and growth from a position of even greater strength. We have significantly less debt as well as new financing to support our innovation and network plans, complementing our unparalleled global orbital and spectrum rights and strong operating model. We are positioned better than ever to fuel the success of our customers and partners, achieve our strategic objectives, and accelerate our growth. Building the world’s first global 5G satellite-based, software-defined, unified network is just one of Intelsat’s many ground-breaking projects well underway.”
Spengler continued: “Today’s emergence is the culmination of the hard work, collaboration, and vision of many. I especially want to thank our talented and committed Intelsat team members for their unwavering focus on customer service – and thank our valued customers, vendors, and other partners for their trust and support. With a focus on innovation, reliability, and high-performing service, we will advance our business for the benefit of all and continue onward as the leader in satellite communications.”